STATE OF KARNATAKA Vs. DADA AND CO

JUDGEMENT

(1.) This petition is directed against the order dated April 30, 1979 made by the Appellate Tribunal, Bangalore, in STA. No. 487 of 1977.

(2.) The only point that arises for consideration in this revision petition is, whether the realisations made by the assessee in its bills as 'charity' should be included in his total turnover for purposes of levy of tax under the Karnataka Sales Tax Act, 1957 (hereinafter referred to as 'the Act').

(3.) The assessee is a wholesale dealer in foodgrains, pulses, jaggery etc., both on own account and on commission basis. For the assessment year 1975-76 the assessee claimed Exemption in respect of Rs. 18,104,68 being the amount collected from the customers as charity at the rate of 10 Ps., per bag or article. The assessee contended that the collections could not be included in the sale price, that it was specifically collected for purposes of charity and they do not form part of his trading receipts. But the assessing officer disallowed this claim on the ground that the said collections were made in the bills before the sale was completed and as part of the price paid and so he brought that sum to tax.